HUD’s Section 811 PRA Program integration guideline requires that no more than 25% of the units in housing developments be restricted to (or have an occupancy preferences for) persons with disabilities. The Department is now seeking to align its integration percentage in the IHR for large properties. The implication of this revision to the IHR is that a property electing to participate in the Section 811 PRA Program would no longer be limited to 18%, but could identify several more units for the program (up to the 25% limit). The Department is not suggesting reducing the 36% limit to the 25% HUD limit as that would possibly create a more restrictive policy on rural and small properties.

TDHCA conducted research on the most recent disability statistics and how these integration limits align with the current need and found that based on US Census Data:

The percentage of the entire U.S. population with a disability is 19%

Among all Texas Households below 100% of Poverty, 15.7% of Households had a Person with a Disability (100% of Poverty is used as a proxy for households at 30% of Area Median Income)

Among all Texas Households below 150% of Poverty, 27% of Households had a Person with a Disability

Among all Texas Households below 200% of Poverty, 37% of Households had a Person with a Disability (200% of Poverty is used as a proxy for households at 60% of Area Median Income)

Among Households below 200% of Poverty and Not in a Metropolitan Area (used as an approximation for rural areas where small developments are more prevalent), 45.3% of Households had a Person with a Disability.

Based on this data, the current 18% limit for developments with 50 or more units and the 25% for developments with less than 50 units, do not mirror the population of potentially eligible households.

TDHCA is seeking input on what caps allow for properties to pursue funding that may restrict some units to serving households with disabilities while maintaining integrated housing. What set-aside maximums are preferred by commenters?

To facilitate the gathering of feedback on this issue, TDHCA is presenting several options for the updated IHR caps. Comment is requested on which options below are most preferred:

OPTION 1: 25% for developments with 50 or more units and 36% for developments with fewer than 50 units (reflected in draft rule attached). This proposition is a combination of the HUD Section 811 Integration Rule and the existing TDHCA Integration Rule. The 36% limit for developments with fewer than 50 units will remain the same, while the integration limit for developments with 50 or more units would increase from 18% to 25%. These integration limits align more closely with the percent of households qualifying for programs under 60% AMI.

OPTION 2: 37% for all developments. This proposition utilizes the percent of Low-Income (60% AMI) Texas households with a member with a disability. This percentage reflects the population served under many TDHCA Multifamily programs. TDHCA Multifamily programs typically serve households at 60% AMI or less. This aligns most closely with households below 200% of the poverty threshold. 37% of Texas households below 200% of the poverty threshold have a disability.

OPTION 3: Adopt the 811 PRA Program standard of 25% (HUD) for all developments.

OPTION 4:19% for all developments. Which is the percentage of the entire U.S. population with a disability. The original 18% for the TDHCA Integrated Housing Rule was based on Census data that at the time indicated that 18% of the U.S. population had a disability. Data from the 2010 Census indicates that 19% of the U.S. population has a disability today. This data however does not reflect the income levels that TDHCA properties are restricted to and the population variations of households with disabilities seen among lower income levels.

OPTION 5: No change. This would retain the caps at 18% for developments with 50 or more units and 25% for developments with less than 50 units.

OPTION 6: Other. The Department is interested to hear any other suggestions for the set-aside limit.

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